WASHINGTON — NCUA and other federal financial regulators have proposed adding additional paragraphs of text at least one chart to consumer statements on subprime mortgage loans.
In a joint release and submission to the Federal Register the five federal financial regulators issued what they called "illustrations" that are meant to help financial institutions better serve consumers seeking subprime and adjustable rate mortgages.
The illustration contains definitions and explanations of terms such as adjustable rate mortgages, balloon payments and prepayment penalties. It also contains charts which will illustrate the difference in monthly payments between a fixed rate and adjustable rate mortgage.
The illustrations are meant to supplement the agencies' previous joint statement on subprime mortgage lending which they issued in July. The illustrations will be subject to public comment for 60 days after publication, the agencies said.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
